Attitude The Shoe Salesman Expectations What is Critical Illness Insurance? It Pays a Lump Sum Benefit on the Diagnosis of a Covered Condition Purpose Critical Illness Insurance was created to Remove Financial Stress so that the Person can Focus on Recovery It’s About Survival Opportunity We believe Critical Illness is the best opportunity our generation will have in the insurance business Opportunity Meets A Need Not Met by any Other Product Makes a Difference in People’s Lives No One Owns It - Everyone is a Prospect Sets You Apart History of Critical Illness Developed by Dr Marcus Barnard Originated in South Africa in 1983 Introduced in: England Australia Japan Canada US 1987 1990 1993 1994 1999 Successful In Every Country Takes 5-7 years before sales start to develop Sales Ideas are transferable 20 years of Sales Ideas Claims Experience Age Under 40 41-50 51-60 Over 61 UK Claims Paid Male Female 33% 45% 35% 35% 23% 14% 9% 6% Average Age of Claims Paid: 43 Who Do You Know? Ask your clients: “Who do you know?” “Who do you know that’s had a heart attack, cancer or stroke?” “Who planned to be on that list?” “Who on your list could’ve used $25,000, $50,000 or $100,000?” “How would they have used that money?” Medical Advances have changed our lives and are changing our world Due to medical advancements: People are living longer More critical illnesses are being diagnosed People are surviving critical illnesses Survival has a price Why Critical Illness Insurance Now? Why there are more Critical Illnesses such as Cancer, Heart Attack and Strokes today? Leading Causes of Death in 1900 Pneumonia Tuberculosis Enteritis 12 % 11 % 8% Source: The Wall Street Journal, 08/27/01 People are living longer Average Life Expectancy 1900 - 47.3 2001 - 77.2 Source: National Center for Health Statistics 2002 Lifestyles – Today We Diet Smoke (Some of Us) Work more Sleep less Rush The Result: More Stress What are the odds? In the United States Every 29 seconds, someone suffers a coronary event 1 Every 45 seconds, someone suffers a stroke 1 About 1.3 million new cancer cases are expected to be diagnosed in 2003 2 1 Heart Disease & Stroke Statistics - 2003 Update: American Heart Association 2 2003 Cancer Facts & Figures, American Cancer Society Critical Illness Insurance Your chances of surviving are better than ever... 80% 70% 60% 50% Survival 40% Rates 30% 20% 10% 0% Cancer Stroke Heart Attack 1950 2001 2000 Heart and Stroke Statistical Update, American Heart Association 2000 Cancer Facts & Figures, American Cancer Society Critical Illness Insurance Surviving has a price... 35% Direct Cost Indirect Cost 65% Source: 2002 Cancer Facts & Figures, American Cancer Society Survival Has a Price Indirect Expenses Loss of income for self and / or spouse Home modifications Experimental treatment Child care and domestic assistance Transportation and lodging for family members and caregivers during treatment Survival has a price Critical illness insurance meets a need not met by: Medical Insurance Life Insurance Disability Income Type of Critical Illness Insurance Rider On a Life Policy Stand Alone Health Policy Simplified Critical Illness Covered Conditions and Definitions Life-Threatening Cancer Heart Attack Stroke Major Organ Transplant (when registered with United Network Organ Sharing/UNOS) Alzheimer’s Disease Paralysis Renal (kidney) Failure Coma Major Burns As defined by the policy. May vary by state. Exclusions & limitations apply. Simplified Critical Illness Pays 25% of Maximum Benefit When you are diagnosed or require: Cancer in-situ Bypass Surgery Pays 10% of the maximum benefit for Angioplasty As defined by the policy. May vary by state. Exclusions & limitations apply. Return of Premium Death Benefit If you die while your policy is in force, you can receive: 100% of the premiums paid minus any claims or The benefit amount (if from a covered condition) Optional Benefits Return of Premium Rider In the event you survive and do not have a covered condition, you can receive 100% of the premiums you’ve paid at age 75 The Return of Premium rider provides increasing percentages beginning in the 5th year. Optional Benefits Spouse Rider – can purchase any amount not to exceed primary insured Children’s Rider – amounts of $5,000 or $10,000 Waiver of Premium – total disability, 6 month elimination period – retroactive benefits Accidental Death Benefit – any amount up to the maximum benefit amount video Personal Needs Analysis: If you were diagnosed with cancer or suffered a heart attack or stroke, would you want all or part of your mortgage balance paid off? What amount would meet $ your needs? In the event of a critical illness, would you want your credit card or other lines of credit paid in $ full? What amount would meet your needs? In the event of a critical illness, would you want to make sure that all of your other financial obligations are met? What amount would meet $ your needs? Total $ Underwriting – Simplified Must Answer Questions “No” Must Be Within Build Guidelines Underwriting - Simplified Build Guidelines Underwriting - Simplified Tobacco Question Has the proposed insured(s) used any tobacco or nicotine during the past 12 months? Underwriting - Simplified Family History Have any two or more of the Proposed Insured’s natural parents, brothers or sisters, either living or deceased, been diagnosed with the same condition(s) from the following list: Heart disease, stroke, diabetes, kidney disease or breast cancer prior to age 60? Colorectal cancer or Alzheimer’s or Senile Dementia prior to age 75? Any other same cancer in both relatives prior to age 55? Underwriting - Simplified MIB Telephone Inspection Telephone Inspection every 25th App Critical Illness Covered Conditions Cancer Major Burns Heat Attack Coma Stroke Deafness Major Organ Transplant (UNOS) Benign Brain Tumor Kidney Failure Motor Neuron Disease Blindness Advanced Alzheimer's Aortic Surgery Heart Valve Replacement Loss of Speech Critical Illness Covered Conditions Cancer in situ – 25% - $25,000 maximum Bypass Angioplasty – 25% - $25,000 maximum Underwriting Critical Illness Similar to Preferred Life Some Differences Underwriting Critical Illness Mortality vs. Incidence Underwriting Critical Illness Your client is not eligible for CI if there is a prior history of: Cancer (some exceptions)* Diabetes (insulin dependent or uncontrolled) Heart Disease, including heart attack, angina, vascular surgery or angioplasty Major Organ Transplant AIDS, HIV+ Alcohol Abuse, treated within past 2 years Drug Abuse Stroke or Transient Ischemic Attack (TIA) Kidney Failure or Disease (other than kidney stone) Cystic Fibrosis Hepatitis other than A Multiple Sclerosis Muscular Dystrophy Huntington’s Chorea Permanent Paralysis Systemic Lupus Erythematosus Alzheimer’s Disease Amyotrophic Lateral Sclerosis *applicants with certain cancers, including skin cancers other than melanoma or certain early state cancers, may still be eligible for coverage. Underwriting Critical Illness Occupational Consideration Underwriting Financial Guidelines 7 times earned income up to $250,000 6 times earned income up to $500,000 Nonworking spouse: 50% of working spouse limit up to maximum of $250,000 Underwriting Critical Illness Build Underwriting Family History Based on Immediate Family Members – Natural Parents, Brothers or Sisters Underwriting Family History Has any Immediate Family Member suffered from Cancer (specify type), Motor Neuron disease, Alzheimer’s Disease, or other hereditary disease prior to age 65? How do you Sell Critical Illness Forget the Statistics Doctors and good medicine created the problem People survive today! 50 years ago they would have died A Doctor created the Solution You need to help the client with options to attach the dollars ex. Mortgage, replacement of income, etc. Personal Debt Prospecting Your existing Clients are the Best Prospects Who Are Some Other Prospects? Return of Premium Approach When was the last time your car insurance gave you money back when you didn’t have a claim? When was the last time your homeowners insurance gave you money back if you didn’t have a claim? I have a special type of insurance that gives you all your money back. Would that interest you? Presenting Critical Illness Organized Presentation Who do you know? Are you covered? Claims examples Video Consumer PowerPoint Make It Affordable If you knew you were going to be diagnosed with cancer in the next 6 months, would you buy this? How do you know you won’t? Critical Illness Target Markets Supplement to medical insurance Mortgage Protection Supplement to Disability Income Business Market Key Person Loan Protection Buy / Sell Funding Asset Protection Mortgage Market Do you have mortgage insurance? Do you have the old kind of mortgage insurance or the new kind of mortgage insurance? What do you mean? The old kind of mortgage insurance pays off your mortgage only if you die. The new kind pays off your mortgage on death, but in addition, will pay your mortgage if you are diagnosed with cancer, have a heart attack or stroke. Mortgage Market Only 3% of mortgage foreclosures are due to death. 48% are due to a Critical Illness Would you rather have a heart attack and lose your house or have a heart attack and lose your mortgage? You and your family will be able to stay in your house even if the the worst happens. If you had a goose that laid golden eggs, would you insure the goose or the eggs? Critical Illness & Disability Income You need Disability Income Critical Illness does not replace DI You need DI especially if you are disabled because of stress or a bad back. Critical Illness & Disability Income How They Fit Together A Car DI is the brakes CI is the air bag Critical Illness is there when you have the big crash with Cancer Critical Illness & Disability Income Self Employed Supplement to Group DI Occupations Not Eligible for DI What Would You Do If Your Employer Asked You To Take a 40% Pay Cut? After going through Chemo therapy treatments for 5 or 6 months, will you want to go back to work as soon as you can perform the material and substantial duties of your occupation? Business Owners If you were diagnosed with Cancer, or had a Heart Attack, would there be more or less stress in your life as a Business Owner? What is your bank’s policy for people diagnosed with Cancer who have demand loans? What Would Your Banker Do? If He/She Heard That You Were Diagnosed with Cancer? Double Your Line of Credit Be Totally Unconcerned Withdraw Your Credit Completely If you were diagnosed with Cancer today, what would happen to your business? You need to believe that without Critical Illness Insurance, all other aspects of a Client’s financial and personal plans could be jeopardized. Alphonso Franco Keys To Selling CI Organized Presentation Passion Start with your Existing Clients Make it Affordable Educate your Client on the need Developed by a Doctor Celebrity Stories Study Do you want to Know the Secret to selling Critical Illness? Critical Illness was only accepted by 3% of the market in England 10 years ago. Now it is promoted by 99% of the same market. Peter Dodd Pegasus Life London, England November 1999 Good Meeting?